Net Present Value Question
I need to be able to determine what the net present value would be for a list
of months with varying dollar amounts (For example: Jan 120000, Feb 35000, March 55000, etc). What would the values be worth today? |
Net Present Value Question
You didn't specify a rate so I'll assume 5%... You can do this in 2 ways,
first use NPV(): =NPV(0.05,120000,35000,55000) Or you can choose to understand what the NPV() formula is doing by calculating manually: =120000/(1.05)+35000/(1.05^2)+55000/(1.05^3) -- Regards, Dave "ktbull" wrote: I need to be able to determine what the net present value would be for a list of months with varying dollar amounts (For example: Jan 120000, Feb 35000, March 55000, etc). What would the values be worth today? |
Net Present Value Question
Thank you for your response! Very helpful.
"David Billigmeier" wrote: You didn't specify a rate so I'll assume 5%... You can do this in 2 ways, first use NPV(): =NPV(0.05,120000,35000,55000) Or you can choose to understand what the NPV() formula is doing by calculating manually: =120000/(1.05)+35000/(1.05^2)+55000/(1.05^3) -- Regards, Dave "ktbull" wrote: I need to be able to determine what the net present value would be for a list of months with varying dollar amounts (For example: Jan 120000, Feb 35000, March 55000, etc). What would the values be worth today? |
Net Present Value Question
"David Billigmeier" wrote: You didn't specify a rate so I'll assume 5%... You can do this in 2 ways, first use NPV(): =NPV(0.05,120000,35000,55000) Or you can choose to understand what the NPV() formula is doing by calculating manually: =120000/(1.05)+35000/(1.05^2)+55000/(1.05^3) -- Regards, Dave "ktbull" wrote: I need to be able to determine what the net present value would be for a list of months with varying dollar amounts (For example: Jan 120000, Feb 35000, March 55000, etc). What would the values be worth today? |
All times are GMT +1. The time now is 03:48 PM. |
Powered by vBulletin® Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
ExcelBanter.com